US dollar is mostly higher today as the greenback is identified as a likely candidate for strength in the coming months. Recent developments in the eurozone are likely to help the greenback, and positive economic news is spurring speculation — again — that the Federal Reserve will have to make a move to cap inflation soon.
On Friday, the nonfarm payrolls data for the United States indicated more jobs to the economy. Employment has officially returned to its pre-recession peak, and that is prompting many to feel that the Federal Reserve will have little choice but to start considering how it will taper its asset purchase program. Additionally, there continue to be hopes that the FOMC will decide to raise interest rates sooner rather than later.
The strengthening US economy stands in contrast to a still-struggling eurozone economy. The latest business confidence survey in the eurozone shows deterioration of sentiment, and the ECB just announced easing measures. All of this bodes well for US dollar strength.
At 14:15 GMT the US dollar index is up to 80.6700 from the open at 80.4240. EUR/USD is down to 1.3590 from the open at 1.3643. GBP/USD is also lower, dropping to 1.6787 from the open at 1.6803. USD/JPY is higher, moving up to 102.5360 from the open at 102.4945.
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